Australia Exported Biofuels During Domestic Shortages

More than 60 megalitres of Australian-made biofuel products were exported offshore in 2026 as petrol and diesel pumps ran dry across Australia[1]. This happened even as the federal government introduced a $10.7 billion National Fuel Security Plan in May 2026[6][8][9].

This situation reveals a tension in Australia's energy strategy, where domestic production left the country during a time of scarcity. It highlights challenges in how effectively the nation secures its fuel supply for its citizens and economy, especially as critics describe the government's plan as “insufficient”[7].

What the records show

Records show that over 60 megalitres of Australian-made biofuel products were sold to international markets at the same time that Australian petrol and diesel pumps experienced outages[1]. The Australian government, through the Minister for Energy and Climate Change, the Hon. Madeleine King MP, announced a $10.7 billion National Fuel Security Plan in May 2026[9]. This plan includes the establishment of a government-owned emergency fuel reserve, increased minimum stockholding requirements for refiners, and investments in domestic refining capacity[6][8][9]. The government is also consulting on potential measures to compel petroleum companies to purchase Australian-made fuels to enhance local supplies[1].

The timeline

In May 2026, the Australian federal government unveiled its $10.7 billion National Fuel Security Plan[6][8][9]. Around the same time that petrol and diesel pumps were running dry across Australia in 2026, more than 60 megalitres of biofuel products manufactured in Australia had already been exported[1]. The government began consulting on policies to potentially mandate the purchase of Australian-made fuels around this period of domestic shortages[1].

What changed and for whom

The National Fuel Security Plan aims to increase Australia's onshore fuel stockpiles and support the domestic refining sector[9]. If implemented as planned, the changes could lead to a government-controlled fuel reserve and potentially higher mandated stock levels for refiners[6][8]. For Australian consumers, the intended outcome is greater fuel security and a reduced risk of pumps running dry[1][6]. However, critics have voiced concerns, labeling the government's plan as “too little, too late” and “insufficient” to adequately address Australia's long-term energy needs[7].

What the subject has said publicly

The Hon. Madeleine King MP, Minister for Energy and Climate Change, announced the details of the National Fuel Security Plan in May 2026. She stated the plan's focus is on “strengthening Australia's Energy Future”[9]. The plan's objectives include increasing onshore fuel stockpiles, supporting the refining sector, and building a government-controlled reserve[9]. Industry experts and opposition politicians have publicly criticized the package, arguing it is “insufficient” and a “missed opportunity for real reform”[7].

What we could not confirm

We could not confirm the specific destinations for the more than 60 megalitres of Australian-made biofuel products exported offshore[1]. We also could not confirm the exact timeframe or duration of the fuel shortages that led to petrol and diesel pumps running dry across Australia[1]. The current status of the government's consultation on forcing petroleum companies to buy Australian-made fuels is also unconfirmed[1].